Direct Cash Transfer: Govt transfers Rs 35.45 lakh on launch day

The government rolled out its 'game changing' direct cash(or benefit) transfer scheme in 20 districts across 16 states on Tuesday, transferring over Rs 35.45 lakh in 1980 transactions to the accounts of beneficiaries with Aadhar or Unique Identity numbers.

MUMBAI: The government rolled out its 'game changing' direct cash(or benefit) transfer scheme in 20 districts across 16 states on Tuesday, transferring over Rs 35.45 lakh in 1980 transactions to the accounts of beneficiaries with Aadhar or Unique Identity numbers.

"There were about eight banks who were bankers to the government's schemes and 23 recipient banks who received payments on beneficiary accounts," said a senior official from National Payment Corporation of India, on condition of anonymity. NPCI has set up the Aadhar-enabled payment systems for the transfer of cash subsidies.

The government had earlier mandated Aadhar cards for transfer of benefits, but on Monday Finance MinisterP Chidambaram said that the cash would be transferred to the beneficiary accounts, even if they do not have Unique Identity cards. The total amount transferred to the account of beneficiaries without Aadhar numbers could not be determined.

The government on Tuesday rolled out transfer of benefits for 10 schemes, including Janani Suraksha Yojana, Mahatma Gandhi National Rural Employment Guarantee Scheme, District welfare schemes, Rural Development Schemes and student scholarships and stipends.

"Over the next few days or weeks, we will aim at 100% penetration of Aadhaar beneficiaries...whether there is Aadhaar card or not money will be credited, money will be withdrawn," Finance minister said.

The government had announced transfer of cash subsidies in 43 districts by January 1. But now it is being done in a phased manner starting with 20 districts in Karnataka, Andhra Pradesh, Delhi, Rajasthan, Madhya Pradesh and Punjab.

All the 43 districts will be covered by March 1. So far about 20.4 crore people have enrolled for Aadhar membership, data from UIDAI shows. The government planned to transfer benefits to about 2 lakh beneficiaries of seven schemes in 20 districts on Tuesday.

Public sector banks have been opening accounts in the 51 districts on a war footing, increasing the coverage through business correspondents.

However, a major problem, bankers say, has been the lack of sufficient number of hand-held devices for the banking correspondents that would be necessary in case of requirement of cash withdrawals by beneficiaries in far- flung areas .